Dear Family and Friends,
Unbelievable things are happening in Zimbabwe. I wonder how many times in the last fifteen years I’ve started one of these letters with that phrase! With every passing day Zimbabwe in 2016 feels more and more like Zimbabwe in 2007 and 2008: we’re literally running out of money again. The only difference now is that we aren’t trading in super-hyper- inflation Zimbabwe dollars but in very real, very dirty, US dollars.
Banks have just sent out a notice to their customers advising that daily cash withdrawal amounts have been reduced by 60%. Last week, if you had it, you could draw out US$5,000 a day; this week you can only withdraw US$ 1,000 of your own money. Another notice advised that interest rates had been cut by 50% and then came the notice that all international internet payments had been suspended until further notice: “due to supporting documents required in line with the new RBZ directive.”
The next unbelievable news came from parastatal ZESA, the electricity suppliers. Going into my local ZESA offices to buy prepaid electricity vouchers there were no signs, notices or adverts about the proposed increases. I asked if the price was going up, by how much and when. Vague mumbling revealed that a 45% increase was coming but “it could be today, tomorrow, next month or some time.”
Then came the staggering front page weekend news and photographs of war veterans being tear gassed by police in Harare and when the war veterans tried to re-group they were met by water cannons. Some of the quotes they gave to the press were unbelievable and definitely bear repeating here: